Stock By The Dollar

Why are Company Reports important?

Public companies are required to file written reports with the Securities and Exchange Commission (SEC).

The SEC protects investors by regulating companies and the stock market.

You know how you get report cards when you’re in school? If you’re a public company, you have to file a written report with the SEC every quarter. It’s called a 10-Q, and here’s what one looks like:

The 10-Q has lots of details on the company’s financials and overall performance. It’s a quarterly report card for the company.

Once a year, the company files a 10-K, which is like the 10-Q only it covers the entire year. It’s the report card that has final grades for the year. The 10-K (which is black and white and full of numbers) is often part of a bigger, more colorful report the company puts out called an annual report.

The annual report starts off with a letter from the CEO describing the company’s accomplishments and thanking shareholders for their support. Warren Buffett’s annual letter to Berkshire Hathaway shareholders is famous!

You can get the 10-Q, 10-K, or annual report for any stock (even ones you don’t own) for free at the company’s website.